The Department for Work and Pensions (DWP) has called for evidence on the impact of funding defined benefit (DB) pension schemes on investment and growth.
The DWP has asked two questions:
- Should employers undergoing valuations of DB pension deficits be allowed to smooth the calculations of their asset and liabilities?
- Should The Pensions Regulator be given a new statutory objective to consider the long-term affordability of deficit-recovery plans to sponsoring employers.
The call for evidence was issued following Chancellor George Osbourne’s announcement in December’s Autumn Statement, in which he said: “The government is determined to ensure that defined benefit pension regulation does not act as a brake on investment and growth.”
Steve Webb, minister for pensions, said: “We need to know the current regulatory framework is sufficiently flexible for employers with defined benefit pension [schemes] or whether there is more we could reasonably do.”
The call for evidence will close on 21 February.